On August 5th, US time, ON Semiconductor officially changed its name to onsemi. After the name change, ON Semiconductor put forward a new slogan “Smart Technology, Bright Future”, aiming to create smart power and sensing technology with a highly differentiated and innovative product portfolio, solve the most difficult design challenges of customers, and empower a sustainable ecosystem. Help build a better, greener and more sustainable future.
Thanks to the company’s solid execution, continuous structural reforms, and strong demand environment, ON Semiconductor has achieved leading positions in several markets and technologies, including automotive, industrial, 5G, and cloud power supplies. Its performance in the second quarter of 2021 is even more impressive. Set a record, with revenue of US$1.6699 billion.
ON Semiconductor President and Chief Executive Officer (CEO) Hassane El-Khoury
According to data, Hassane El-Khoury was elected as a director of ON Semiconductor in December 2020 and was appointed as the president and chief executive officer of ON Semiconductor and Semiconductor Components Industries, LLC. Mr. Hassane El-Khoury started his career at Continental Automotive Systems as a senior design engineer. After immigrating to the United States from Lebanon at the age of 17, Hassane El-Khoury received a bachelor’s degree in electrical engineering from Lawrence University of Technology and a master’s degree in engineering management from the University of Auckland. He is the 2018 Silicon Valley winner of 40 people under the age of 40 and is currently a member of the KeraCel board of directors.
Focus on smart power and sensing technology
When it comes to sustainable development, one has to pay attention to the current global greenhouse gas emission trend. At present, industrial and automotive end markets account for two-thirds of global greenhouse gas emissions. Climate change not only brings risks to the environment, but also brings huge opportunities for innovative business solutions for enterprises.
“In the automotive and industrial fields, there are many market segments. If a company wants to choose its own position, which business should it focus on? It is actually difficult to make this decision,” Hassane El-Khoury said. In the industrial field, two very key technologies will eventually be concentrated, one is power technology and the other is perception technology. ON Semiconductor focuses on smart power and perception technology to enable sustainable development and achieve success in market segments.” For ON Semiconductor, this is also a huge development opportunity. The company is committed to applying its research and design expertise and adjusting its operations to achieve net zero emissions by 2040.
So how to use ON Semiconductor’s technology R&D, product design, manufacturing capabilities and operational strategies to meet such opportunities and maximize value, and how smart power and sensing technologies can help ON Semiconductor to achieve disruptive technologies. Create a strong sustainable development ecology?
From the perspective of power supply, climate and sustainable development are the main demand drivers for electrification and high energy efficiency of power supplies. At the same time, automobiles and industries are also accelerating electrification and automation; and in terms of perception, industrial automation can drive greater production capacity and efficiency. The automotive industry can also use intelligent sensing technology to accelerate autonomous functions and accelerate the pace of autonomous driving above L2.
Hassane El-Khoury said: “We believe that companies with disruptive technologies and a strong ecosystem will win, especially in the next ten years. They will achieve good development. The two technologies of smart power and smart perception can achieve 6% and 10%, respectively. The compound annual growth rate (CAGR). And automotive and industrial-related fields are closely related to these two technologies.”
Through intelligent power supply and intelligent perception technology, ON Semiconductor hopes that customers can achieve “both fish and bear’s paw” and realize the power of complementary development. Customers do not need to make trade-offs in terms of cost, energy efficiency, performance, chip footprint and weight, that is, they can enjoy the advantages of all these aspects. Specifically, ON Semiconductor’s smart power supply enables OEMs to exceed the power range target with lighter weight and reduce system costs with unparalleled energy efficiency. ON Semiconductor’s smart sensing solution provides proprietary functions in the smallest package to support customers in solving their problems. All use cases required for complex problems.
In terms of the development of the entire ecosystem, 5G and cloud power, factory automation, energy infrastructure, charging, advanced security, and electric vehicles have become the next focus areas of ON Semiconductor:
In the field of 5G and cloud power, 5G global deployment has accelerated the pace of development of data centers, and the increase in physical density of data centers will increase power consumption. ON Semiconductor provides high-efficiency smart power solutions to optimize power consumption in cloud and telecom infrastructure;
In the field of industrial automation, focusing on improving productivity and throughput, in terms of intelligence, autonomous systems make decisions based on programmed parameters and artificial intelligence, which makes robots and collaborative robots possible. ON Semiconductor provides high-speed intelligent sensing for robotics, scanning and inspection and the broadest cross-voltage and technical power supply combination;
In the field of energy infrastructure, renewable energy is used to support the growth of energy demand. At the same time, considering the energy storage system to bridge the cycle of market use, for example, when solar energy is not available at night, corresponding energy storage is needed to solve the problem of energy use. ON Semiconductor provides high-efficiency smart power solutions that integrate IGBT and SiC to improve power throughput;
In the charging field, it is mainly an innovative fast charging system. ON Semiconductor’s energy-efficient smart power solution containing SiC allows a car to be fully charged within 20-30 minutes;
In the field of advanced security, the use cases in the automotive industry are different from those in other industries. The perception in this area must be absolutely reliable, and both day and night safety and functions need to be guaranteed. In order to make the intelligent perception technology of car cameras absolutely reliable, ON Semiconductor has analyzed more than 4,000 failure modes, covering a wider area than anyone, even better than human vision. The market share of intelligent perception in ON Semiconductor’s advanced driver assistance system (ADAS) has surpassed the sum of all competitors.
In the field of electric vehicles, many countries in the world, including China, are accelerating the pace of the electronicization of automotive functions. On the one hand, it is the regulatory requirements, and on the other hand, the consumer’s acceptance is getting higher and higher. Therefore, vehicle manufacturers are also Expand its portfolio of electric vehicle products while competing in mileage and performance. ON Semiconductor has the most comprehensive solution, covering car chargers, high-voltage load battery management, ADAS, infotainment, head-up display (HUD) doors, seats, keyless entry, gateway modules…will win the battle for automotive electronics content.
All in all, in supporting a sustainable ecosystem, ON Semiconductor will promote the content of each growth market and make achievements in each market segment.
According to Hassane El-Khoury, the compound annual growth rate of smart power and smart perception in the next few years will be 7% to 9%, of which smart power will be higher than the market average, reaching a growth of 15%; and smart perception will also A growth of 13% can be achieved, and ON Semiconductor will invest more in the two businesses of smart power and smart perception in the future.
In addition, it is expected that the compound annual growth rate of the automotive and industrial sectors will reach 7% to 9% in the next few years, 17% in the automotive industry, 7% in the industrial sector, and 11% in 5G. Among them, smart power and perception will drive ON Semiconductor’s 2x market growth, and the proportion of revenue from industry and automobiles will increase from the current 60% to 75%. In addition, ON Semiconductor’s customer base is highly diversified, with the top 20 customers accounting for nearly 35%. In terms of sales channels, 40% are direct sales and 60% are through agents. Through this diverse combination, ON Semiconductor can serve various customers in the market more efficiently.
Lighter fab manufacturing strategy
It is worth noting that Hassane El-Khoury also mentioned at this exchange meeting that ON Semiconductor’s entire business model will gradually transform from the traditional IDM model of the complete machine company to the Fab-Liter’s more lightweight fab manufacturing strategy. The reason is that the traditional method requires large-scale expansion of production capacity, and sometimes the rate of return is not particularly high. However, in the future, ON Semiconductor will adopt more flexible manufacturing routes and strategies, and will utilize internal and external production capacity and make flexible use.
“We will vigorously invest in areas where there are internal differentiated technologies and strategic growth, such as our smart power supply and intelligent sensing technology, and increase our investment in internal production capacity. However, we will rely on some non-patent technologies and non-specialized production capacity. Provided by external partners, so that we can achieve very flexible capacity scheduling,” Hassane El-Khoury said. The flexibility of the general packaging back-end factory has increased the external output of this part, and our internal production capacity is mainly used for the differentiated technology and strategic growth areas just mentioned, in order to improve our cost structure. At the same time, we It will also optimize capital expenditures and rely on external partners to provide common packaging and technology to maximize returns.”
“Smart Technology, Bright Future”
Just like the brand-new slogan “Smart Technology, Bright Future” put forward by ON Semiconductor, ON Semiconductor is solving customers’ most challenging problems by promoting innovation, creating smart power and sensing technologies.
Today, ON Semiconductor continues to make solemn commitments in terms of sustainable development, environmental society and corporate governance, and has won a series of awards in these areas. For example, in the “Barron’s Weekly” 100 most sustainable companies in the United States in 2021 and ranked 10th. Ranked among the top 1% of 768 companies in the 2020 ecovadis awards. And many other awards related to sustainability and environment, health, and safety (ESG).
In addition to its own contribution to sustainable development, ON Semiconductor will also support all customers to achieve their goals in a sustainable ecosystem. In China, a consistent winning strategy will also be adopted. First of all, it will follow the general trend of China’s development, develop smart power and smart perception technologies, and promote a two-fold market growth, with particular attention to the electronicization of automotive functions, autonomous driving, machine vision, factory automation, 5G, cloud power these fields.